ST Aerospace has signed a Memorandum of Understanding (MOU) with Vietnam Airlines to set up a joint venture (JV) to provide component Maintenance, Repair & Overhaul (MRO) solutions.
The two companies have also entered into a 14-year component Maintenance-By-the-Hour (MBH™) contract that will support the airline’s whole fleet of 58 A321CEOs and 20 A321NEOs, including other A321s that will be delivered, in component maintenance starting from mid-2018. Under the MBH™ contract, ST Aerospace will set up an inventory base in Vietnam to provide timely services to Vietnam Airlines. The signing ceremony was held under the witness of Vietnamese Prime Minister Nguyen Xuan Phuc who is on an official visit to Singapore from 25 to 28 April 2018, and Singapore Minister for National Development Lawrence Wong.
The JV, to be headquartered at Noi Bai International Airport in Ha Noi, will cater to Vietnam Airlines’ requirements and the region’s rising needs in aircraft MRO services. It will start with support for a wide range of technology groups including pneumatics, hydraulics and electrical components, before potentially increasing the collaboration to include aerostructure and airframe MRO. The partnership will leverage Vietnam Airlines’ maintenance subsidiary, Vietnam Airlines Engineering Company (VAECO)’s existing facilities in Hanoi and Ho Chi Minh City, as well as ST Aerospace’s core expertise in MRO to develop these facilities and their capabilities. The cooperation will also help Vietnam Airlines shorten the turnaround time for maintenance and repairs as the process will be conducted in Vietnam, rather than having to send it abroad as before, thus saving costs and creating higher operational efficiency.
Lim Serh Ghee, President of ST Aerospace said, “We are happy that Vietnam Airlines has decided to entrust their A321CEO and A321NEO fleet to us for component support, and even more so by the prospect of deepening our partnership with the exploration of a joint venture. The robust development of the economy and a burgeoning middle class have created an ideal environment for the growth of the aviation industry in the Asia Pacific region, and Vietnam’s double-digit growth in the air travel sector is the best reflection of this. Riding on this growth, strategic partnerships with established industry participants such as Vietnam Airlines will enable us to increase our regional footprint and better penetrate high-growth markets.”
Dang Ngoc Hoa, Executive Vice President of Vietnam Airlines said, “We are delighted to partner with ST Aerospace to establish a joint venture as well as to provide MRO support for the A321 aircraft family, which is the majority of our fleet. This partnership not only improves our fleet efficiency and world-class service quality, but also represent a major step forward for Vietnam’s aviation industry in general, contributing to the boost of bilateral economic, trade and aviation relations between Vietnam and Singapore.”
These agreements are not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.
The Philippine Navy (PN) is in the process of reviving the country’s naval shipbuilding industry, said the service’s spokesperson WPS…
AirAsia marks the beginning of the airline's first flight from Ahmedabad, India, to Kuala Lumpur, Malaysia, enhancing air links between…
BlueHalo and Kraken Technology Group are partnering to integrate BlueHalo’s Artificial Intelligence and Machine Learning (AI/ML)-backed autonomous mission systems into…
8tree’s dentCHECK inspection tool, developed for and used within the MRO sector for dent-mapping, is now being utilized at Boeing’s…
Hensoldt UK has been chosen by Navantia UK to provide key systems for the UK Royal Fleet Auxiliary’s (RFA) three…
Embraer delivered its 1800th E-Jet aircraft with the handover of third E190-E2 to Royal Jordanian Airlines at Embraer’s facility in…
Havelsan, a Turkiye software and systems company, has attained the European Union Aviation Safety Agency (EASA) Level D certification for…
ST Engineering Marine Ltd, a subsidiary of ST Engineering, has secured a contract with the Singapore Ministry of Defence for…
Airbus Helicopters has secured a contract with Brunei's Ministry of Defence for the procurement of six H145M helicopters. “We are…
Following the official launch last March, AirAsia Cambodia flew its inaugural domestic flight today, marking a major step in the…
Global passenger demand, measured in revenue passenger kilometers (RPKs), was up 13.8% in March this year compared to the same…
Exel Composites, a Finnish composites manufacturer, announced a collaboration with French airship designer and operator Flying Whales. The partnership aims…
Pratt & Whitney Canada (P&WC) and the state-owned airline of Angola, TAAG Angola Airlines E.P., have entered a six-year agreement…
Indonesia’s Ruang volcano erupted again on Tuesday (Apr. 30), leading to the cancellation of flights and closure of airports in…
Defense Technology Institute (DTI) Thailand has delivered two prototypes of the 105mm light howitzer CS/AH2 to the Artillery Battalion, Artillery…
Airbus has announced the launch of the Pléiades Neo Next programme, aimed at bolstering its high-resolution Earth observation satellite constellation,…
Eve Air Mobility joins Japan’s Advanced Air Mobility (AAM) Public-Private Committee, as announced by the company’s press release on Tuesday…
ACIA Aero Leasing, headquartered in Dublin, Ireland, announced the successful delivery of one of two ATR 72-500 Bulk Freighters to…
One TPS-P14ME Mobile Air Surveillance Radar System from Japan was officially handed over to the Philippines Air Force (PAF). The…
Skyllence, an international air charter broker, announced the appointment of Kestutis Abarius as Head of Sales on Monday (Apr. 29).…
Qatar Airways and the United Nations High Commissioner for Refugees (UNHCR) have reaffirmed their commitment to aiding the most vulnerable…
The Philippines Coast Guard (PCG) is set to acquire an additional five Multi-Role Response Vessels (MRRVs) from Japan. These vessels…
Korean Air is set to open a new daily route connecting Seoul Incheon with Macau starting 1 July 2024, as…
Qatar Airways Cargo announced the opening of its advanced Animal Centre and the relaunching of its Next Generation Live product…
All Nippon Airways (ANA) and Air India, India's national flag carrier, have established a commercial agreement to initiate a codeshare…
Saab has completed the delivery of another GlobalEye Airborne Early Warning and Control (AEW&C) aircraft to the United Arab Emirates…
In what seems to be a continuation of Vietnam’s Defence Minister General Phan Van Giang's visit to South Korea in…
GD Helicopter Finance (GDHF), a Dublin-based helicopter leasing and finance company, has secured a contract with Airbus Helicopters and GDAT,…
Indian Low-Cost Carrier (LCC) IndiGo has announced a firm order for 30 Airbus A350-900 aircraft in what is its first…
Racer demonstrator, developed by Airbus Helicopters as part of the European Research Clean Sky 2 initiative, has completed its inaugural…
Headquartered in Singapore with reporters spread across all major regions, GBP Aerospace & Defence is a leading media house that publishes three publications that serve the aerospace and defence sector - Asian Defence Technology, Asian Airlines & Aerospace and Daily News. Known industry-wide for quality journalism, GBP Aerospace & Defence is present at more international tradeshows and exhibitions than any other competing publication in the region.
For over three decades, our award-winning team of reporters has been producing top-notch content to help readers stay abreast of the latest developements in the field of commercial aviation, MRO, defence, and Space.
Copyright 2024. GBP. All Rights Reserved.
Home Defence & Security Space Commercial Aviation Maintence Repair & Overhaul Daily News Events About Us
2024 GBP all rights reserved.